Welcome to Buffer Finance Docs
What is Buffer Finance?
Buffer is an exotic options platform, built on Arbitrum offering a Web-2 like trading experience in a permissionless and decentralized fashion - gasless, instant and in one-click. Buffer now offers leverage trading of upto 100x, allowing traders to intuitively hedge risks and adjust exposure structure.
Not only can you hedge up/down binary options positions using perpetuals, but also apply up/down strategies to hedge your long/short perpetual positions. This dual-direction hedging capability, integrated seamlessly into our interface through our partnership with Perennial Finance, offers unparalleled control and efficiency in your trading strategy.
Why Trade on Buffer Finance?
✨ One-click, gasless, Instant Trading: Buffer requires zero gas costs, zero wallet approvals (via EIP 2612 permit integration), zero external wallet to trading asset transports, gas top-ups, or any hidden complications for that matter. This is achieved through our gasless 1-Click trading facility, which allows Buffer to emulate the familiar and convenient trading experience of centralized platforms.
🔓 Non-Custodial Trading: This means that we do not pose any KYC requirements or have the ability to cease, blacklist, or freeze your account. You have full control over your assets at all times.
⚖️ Fair & Transparent: Buffer utilizes Pyth Network for price feeds for a fair and reliable price source. Fair and transparent distribution of platform rewards, and no requirement of a centralized clearing house.
💠 Multi-asset Collateral: Traders on Buffer are not restricted to a single collateral asset or a specific collateral type based on their trade direction.
🌊 Higher Trading Flexibility: Features like limit orders (using application-level intents) in-chart management and early close significantly improve trading flexibility. Buffer also offers extremely low-latency options trading. This is achieved through our off-chain, sequencer-like facility, which executes multiple trades in groups or queues.
💶 Diverse Market Access: Dive into multiple markets including crypto, forex, and commodities, and find the perfect fit for your trading style.
🔋 Payout Boosts: Unlock up to 90% payouts, and boost them even further with Optopi NFTs or our referral program.
🎚 Advanced Order Types: Tailor your trading with customizable order types, allowing for precise entry and exit points. Optimize your earnings by setting your desired payout levels on limit orders.
🏦 Market Making Vaults: Trades are powered by USDC & ARB based liquidity pools, which act as the clearing house for options traders. Users can simply deposit assets into the BLP vaults to become market makers on Buffer. LPs enjoy platform fees and exclusive esBFR token rewards.
🛡 Robust LP Protection: Dynamically adjusted fees maximizing LP returns relative to market conditions and demand for liquidity.
♻️ Flywheel Effect: Buffer's focus on short-term trading instruments enables liquidity to be used multiple times. This efficiency generates higher fees with significantly less capital.
Why did we build Buffer?
The binary options industry, characterized by its simplicity and high pay-outs, is a behemoth, with platforms like IQ Options, Pocket Options and Quotex leading the way. However, the centralized nature of such platforms has significant disadvantages for traders.
Relying on third-party brokers increases the risk of fraudulent market activities, including manipulated price feeds leading to position liquidation, inaccurate account balances, and counter-trading instead of establishing genuine positions.
Moreover, the inherent lack of composability on centralized counterparts impedes the effective utilization of binary options for hedging or yield generation. The advent of a decentralized binary options platform on-chain is a monumental win, with the potential to onboard millions of global traders to DeFi.
Buffer is positioned to do just that. Our paramount objective is to unequivocally demonstrate that decentralized trading platforms can compete directly with such centralized counterparts.